Floor Definition Finance

Caps and floors can be used to hedgeagainst interest rate fluctuations.

Floor definition finance.

Legal definition of floor 1 a. What is an interest rate floor. Interest rate floors are utilized in. 2 a guaranteed lowest level for an interest rate.

In context of interest rates a level which an interest rate or currency is structured not to go below. Members of an assembly took questions from the floor. A level of a building. A public space for.

There are several meanings for a floor in finance. Floor the area of a stock exchange where active trading occurs. Also the price at which a stop order is activated when the price drops low enough to activate such an order. A main level space as in a stock exchange or legislative chamber distinguished from a platform or gallery b.

Also the price at which a stop order is activated when the price drops low enough to activate such an order. 1 the lowest acceptable limit by controlling parties. Floor the area of a stock exchange where active trading occurs. In context of interest rates a level which an interest rate or currency is structured not to go below.

An interest rate floor is an agreed upon rate in the lower range of rates associated with a floating rate loan product.